Asset finance is a type of financing that allows businesses in the UK to purchase assets, such as equipment or vehicles, without having to pay the full cost upfront. This can help businesses conserve their cash flow and access the assets they need to grow and expand.

With asset finance, a lender provides a business with the funds to purchase the asset, and the business then repays the lender over a set period of time. This can be done through a variety of financing options, including hire purchase, leasing, and refinancing.

Hire purchase involves the business making regular payments to the lender over a set period of time, with ownership of the asset transferring to the business once the final payment is made. Leasing, on the other hand, involves the business renting the asset from the lender for a set period of time, with the option to purchase the asset at the end of the lease term. Refinancing involves using an existing asset as collateral to secure financing for a new asset.